Construction In Search Of An Ethical Code

Coinciding with publication of Transparency International’s latest Global Corruption Report, the Society for Construction Law in the United Kingdom has published a draft code on ethical conduct which warns construction managers and other professionals working in the built environment that many of the actions which they regard as ‘part of the game’ may well be offences under the legislation as it now stands.

The authors of the code, Neill and Catherine Stansbury, point out that the word corruption includes not only bribery but also fraudulent practices such as tender collusion, claims fraud and supply of sub-standard products or incorrect quantities. The Transparency report however is calling for greater vigilance and powers of supervision of international contracting by the multilateral development banks which at present do not require anti-bribery compliance or corporate governance programs as a prerequisite for companies entering into contracts funded by this type of financial institution.

A report last year from the U.S. Government Accountability Project found that none of these banks have reliably safe channels for whistleblowers to make a difference against corruption. The U.S. Senate Foreign Relations Committee has also voiced its disquiet about the conduct of the multilateral development banks and received evidence of funding losses running into hundreds of millions of dollars. Concern over the corrupt use of funds associated with major infrastructure projects around the world derives added public interest at this time from the nomination of a new chief for the World Bank, an appointment which promises to be beset with controversy.